Comex Silver and Reddit

Please read this free public post today.

Fri, Jan 29, 2021 - 11:04am

The Reddit-driven fun continues today with no end in sight as of this moment. Can our new friends continue this momentum into next week and, if they do, what might be some targets to watch?

More on that in a minute. First, let's just take stock of where we are as I type. Comex gold is up 1.3% but, more importantly, Comex silver is up 5.4% and pushing toward $28. The shares are rolling again, too, with some of the most heavily-shorted like First Majestic jumping higher again.

And this is awesome! Again, though I'm not sure much can be done to harm The Banks through buying at the Comex level, there certainly exists the possibility that enough of a move in price could spark some additional momentum...which would lead to some additional pain for The Banks...which could lead to some additional momentum...which might lead to some Bank short covering...which could lead to some additional momentum....and if this continues long enough, we might do some real damage.

This is far more possible/likely in Comex silver as The Banks have the additional backing of the BIS et al in managing their gold positions. Silver? Not so much. So this sets us up for a very interesting day today, a possibly significant weekly close, and then who knows what might happen next week. This thing could brew and simmer and spread all weekend. However, before we get there, we're going to need a strong close TODAY. Can we get there?

Already, price was smashed lower after the NYSE open and before the London PM Fix. It has since recovered a little but be aware that The Forces of Darkness are OBVIOUSLY watching closely and will attempt to manage BOTH prices lower, if possible. Having The Reddit Horde jump prices higher at the open is great, but if they can't keep it going all day, then The Banks are just going to lean on price and rig it back lower...just as we saw in Comex gold yesterday.

OK, so back to Comex Digital Silver. As discussed yesterday, I don't think it's likely that a grass roots level buying of Comex contracts is going to be successful in squeezing The Banks. However, if TRH (my new acronym for The Reddit Horde) is PERSISTENT and PATIENT enough, they may be able to set off a virtuous cycle of higher momentum that eventually gets price feeding on itself.

What do I mean? Well, the first step is to close above $27.30 on a weekly basis. This seems possible today. However, if price can close above $28.04, then we'll have the highest weekly close IN EIGHT YEARS. This would be a significant event to the crowd of Large Specs and hedge funds that typically trade Comex silver futures. But let's not get ahead of ourselves. The first goal for today is that $27.30 level. Can we paint the weekly close above that level?

And again, here's a refresher that was featured prominently in this year's macrocast. As you can see below, once the price of Comex silver begins with a "3" again, it likely moves up fairly quickly. When you factor in some possible Bank short-squeezing, you can see where this could get pretty interesting in the weeks ahead if TRH can remain interested for a while.

Where TRH can be even more effective is in getting revenge upon the predatory short sellers that have plagued our sector for years. We've long supported the Save Canadian Mining initiative but since the Canadian government couldn't care less about the health of their most important industry, maybe we can just crush the shorts the old fashioned way?

It's going to take some work because it's a long list of companies that have been hampered by these degenerates. However, we'll take it one day at a time and try to keep the pressure on. For example, First Majestic was again reversed today at $19.00, which is the old 2016 high. If enough pressure can be applied consistently over the next week, price could easily break into the 20s and soar past the old 2011 all-time highs. Above there, the pressure on the sniveling little cokehounds will increase exponentially.

And just one more note about our Bullion Bank foes and their Comex. As you know, the Feb21 Comex gold contract went off the board and into "delivery" last night. As has been the case since last April, the total left open and standing is about 3-5X the long-term historical average as 33,327 contracts.

"Deliveries" began last evening and, already, nearly half the total has been "delivered". But be sure to note which firm was the big issuer (deliverer)...the House or proprietary account of Goldman. And the be sure to note the total....8,900 contracts! Well this is in CLEAR VIOLATION of the expanded position limit of 6,000 contracts! Once again, The Banks flaunt the rules because they can. The rules apply to you and I but not them. It's a private club and we're not in it.

Hey, @CFTC!
Save me the "bona fide hedging exemption" bullshit.
Here's the house (proprietary) account of Goldman Sachs issuing/delivering 8900 Feb21 gold contracts last night.
You caved and doubled the position limit to 6000. The Banks couldn't care less.
Why even have limits?

— TF Metals Report (@TFMetals) January 29, 2021

OK, I've got to stop here in order to record the Sprott Money weekly wrap-up. The guest this week will be silver expert David Morgan. Good timing, huh? As usual, I'll post the recorded audio into the comments section. As I close, I see that the pressure continues but price is, so far, hanging in there. Again, let's take it one day at a time and focus our goal today on $27.30. Closing above there will set the stage for an interesting early week next.

Have a great day.



About the Author

tfmetalsreport [at] gmail [dot] com ()


Jan 29, 2021 - 4:24pm

AG as a spear to pierce perceived banker invulnerability

in this Sector. We've suffered a particularly brutal last decade in mining equities while central banks have made wild bets; run garbage stocks to ludicrous valuations and institutionalized rampant speculation via QE $Trillions in liquidity...

Paired strategies like long equities/short miners "work until they don't" and are self reinforcing as the sector is serially abused and punished; and EVERY single miner on planet Earth is impacted to some degree via this naked shorting abuse.

Generalist stock funds avoid the miners because they think it is a losing bet; you can't win against these banks... Well...

IF AG could serve an opening volley where the market maker gets overwhelmed, and this sector short bet finally gets roasted; it could embolden a serial run through the sector; name by name as the sector is chock full of compelling fundamental valuation stories. Wall Street is currently chastising the WBS crowd for betting on companies with"poor fundamentals"... What are they going to say when a paired trade in physical Silver and a premier Silver Miner takes off?

This could ignite a long overdue reevaluation in the entire sector; and finally give these paired trade structural shorts something to lose sleep over.

I pray the WSB traders will catch the Silver bug and recognize that winning a hand @ Wall St casino chips is not "wealth"; just more casino chips. Send Silver to the moon, run the table on Silver stocks; and hold physical Silver in a world offering us zero interest rates- then walk out of the casino.

Jan 29, 2021 - 4:11pm

Welcome Reddit Guys and Gals!

For those digesting our wayward Banking/Trading system I reference a well experienced entrepreneur and somewhat untactful articulator of how things are rigged.......for those who would like details of actual events (very educational and entertaining with few minced words, like TFMR):

Karl Denninger:

Jan 29, 2021 - 4:03pm
Jan 29, 2021 - 4:01pm

What a day...

Enjoy the weekend!


Jan 29, 2021 - 4:00pm

And in case you read that this selloff in CDG is dollar-related

I can assure you that it's not. Check the action since 10:00. The POSX is flat.

Instead....and just like yesterday...this is The Banks simply absorbing all of the new bids and pressuring price lower and lower and lower. All designed to avoid any notion of breakout and get price back under that confluence of the 50-day MA and 200-day MA. Just like we saw in the reversals of November 9 and January 6.

Jan 29, 2021 - 4:00pm
Jan 29, 2021 - 3:57pm

Just an idea...

I think that's partly because you have so many of the BIG miners. I have Gold Ventures sitfolio, and am up an average of 6% today, with GGTHF leading the way at 19% and JRVMF sucking hind tit at -5%.

Jan 29, 2021 - 3:52pm

standard Monolith price action

  1. Pop of buying interest at the NYSE open
  2. Buying interest subsides after about thirty minutes
  3. The Monolith takes over from there
Jan 29, 2021 - 3:47pm

AG is next to blow up

The average volume of AG is about 8m. Today it's 27m. Tonym9 I think you may be right!

Jan 29, 2021 - 3:43pm


Sounds good to me, I'm in.

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